Nicholas Kirkman
W915684
Cost Accounting Ethics Project

Behaving ethically is an important part of management, at any level, and four major factors are key to ethical management. The first factor, competence, requires management to maintain an appropriate level of professional competence by ongoing development of their knowledge and skills. This ensures that management is skilled at what they do, and will continue to develop their skills as they progress along the company ladder. Confidentiality is the second factor, which requires managemtn to refrain from disclosing confidential information acquired in the course of their work, and to ensure their subordinates do the same. Management must also have integrity, by avoiding conflicts of interest and advising all appropriate parties of any potential conflict. Additionally, they must refrain from engaging in any activity that would prejudice their ability to carry out their duties ethically. Finally, they must have credibility, by disclosing all relevant information that could influence an intended user's understanding of the reports, comments, and recommendations presented.
In the Andahl Logistics Case, the executive staff of Andahl made several suggestions for salvaging the company’s short time operating results:
A. Stop all transatlantic shipping efforts. The startup cost for the new operations are hurting current profit margins.
B. Make deep cuts in pricing through the end of the year to generate additional revenue.
C. Pressure current customers to take early delivery of goods before the end of the year so that more revenue can be reported in this year’s financial statements.
D. Sell off distribution equipment prior to year-end. The sale would result in one-time gains that could offset the company’s lagging profits. The owned equipment could be replaced with leased equipment at a lower cost in the